Palantir Technologies (PLTR) gapped higher at the open today, and rallied to new record highs following its third-quarter earnings report. The company reported a 30% year-over-year revenue increase, driven by strong demand for its artificial intelligence (AI) solutions, particularly in the U.S. government and commercial sectors.
This growth has been fueled by increasing adoption of Palantir's AI Platform (AIP), which has become essential for both government and commercial clients, leading to strong growth in both customer count and revenue. Palantir also raised its full-year revenue and adjusted operating income guidance, indicating management’s expectations for sustained momentum.
PLTR shares reached a new all-time high of $51.33 earlier, and is up more than 23% intraday. Year-to-date, the stock is up a staggering 198%.
CEO Alex Karp's leadership and advocacy for AI have been pivotal, and on a conference call with analysts, he emphasized the technology’s critical role in protecting the U.S. and its allies against advanced terrorist threats. Karp's strategic focus on expanding Palantir's U.S. market presence, as well as the stock’s recent inclusion in the benchmark S&P 500 Index ($SPX), have bolstered investor confidence. However, headwinds in international markets, especially in Europe, remain a concern.
Despite Palantir’s impressive financial performance, analysts remain cautious about the stock's high valuation, which suggests that any potential (or perceived) setbacks could negatively impact its market value.
Q3 earnings beat or not, Karp & Co. definitely haven’t won over all of the skeptics just yet. After earnings today, Mizuho backed a “Sell” rating on Palantir and raised the stock’s price target only as high as $37, citing the high valuation as a sticking point. Likewise, Deutsche Bank upped Palantir’s price target to $26, but stuck with its “Sell” rating.
This article was generated with the support of AI and reviewed by an editor. On the date of publication, the editor did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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